Costco Wholesale (NASDAQ:COST) Given “Sector Perform” Rating at Royal Bank Of Canada

Costco Wholesale (NASDAQ:COST)‘s stock had its “sector perform” rating reaffirmed by stock analysts at Royal Bank Of Canada in a research note issued on Friday, Benzinga reports. They currently have a $1,000.00 price objective on the retailer’s stock. Royal Bank Of Canada’s price objective would suggest a potential upside of 5.96% from the stock’s current price.

A number of other analysts also recently issued reports on the company. Weiss Ratings downgraded Costco Wholesale from a “buy (b-)” rating to a “hold (c+)” rating in a research note on Wednesday, September 2nd. HSBC upgraded Costco Wholesale to a “buy” rating in a research report on Friday, September 25th. Wells Fargo & Company reduced their price target on shares of Costco Wholesale from $1,000.00 to $950.00 and set an “equal weight” rating on the stock in a research report on Friday, September 25th. Mizuho decreased their price target on shares of Costco Wholesale from $1,100.00 to $1,065.00 and set an “outperform” rating on the stock in a research note on Friday, September 25th. Finally, Roth Capital reiterated a “sell” rating and set a $781.00 price objective on shares of Costco Wholesale in a research report on Friday, September 25th. Twenty-two equities research analysts have rated the stock with a Buy rating, ten have issued a Hold rating and one has issued a Sell rating to the company. According to data from MarketBeat, the company presently has an average rating of “Moderate Buy” and a consensus target price of $1,046.27.

Costco Wholesale Price Performance

Shares of COST traded down $4.19 during midday trading on Friday, hitting $943.73. 402,906 shares of the company traded hands, compared to its average volume of 2,186,670. The stock has a market cap of $418.53 billion, a price-to-earnings ratio of 45.46, a PEG ratio of 4.03 and a beta of 0.88. The firm has a 50 day moving average of $930.81 and a 200-day moving average of $963.49. The company has a debt-to-equity ratio of 0.11, a quick ratio of 0.62 and a current ratio of 1.06. Costco Wholesale has a 52 week low of $844.06 and a 52 week high of $1,096.50.

Costco Wholesale (NASDAQ:COST) last issued its earnings results on Thursday, September 24th. The retailer reported $6.75 earnings per share (EPS) for the quarter, topping the consensus estimate of $6.54 by $0.21. The firm had revenue of $95.72 billion for the quarter, compared to analysts’ expectations of $94.97 billion. Costco Wholesale had a return on equity of 27.60% and a net margin of 3.04%.The business’s revenue was up 11.1% compared to the same quarter last year. During the same period in the previous year, the firm posted $5.87 earnings per share. On average, analysts forecast that Costco Wholesale will post 22.86 EPS for the current fiscal year.

Insiders Place Their Bets

In related news, EVP Claudine Adamo sold 2,200 shares of the firm’s stock in a transaction on Tuesday, September 29th. The stock was sold at an average price of $915.93, for a total value of $2,015,046.00. Following the completion of the sale, the executive vice president directly owned 7,134 shares in the company, valued at $6,534,244.62. This trade represents a 23.57% decrease in their ownership of the stock. The sale was disclosed in a filing with the Securities & Exchange Commission, which is available through this hyperlink. Insiders own 0.10% of the company’s stock.

Institutional Inflows and Outflows

A number of hedge funds have recently bought and sold shares of the company. State Street Corp raised its position in Costco Wholesale by 31.7% in the 2nd quarter. State Street Corp now owns 23,901,594 shares of the retailer’s stock worth $22,359,224,000 after purchasing an additional 5,749,362 shares during the period. Bank of America Corp DE boosted its position in shares of Costco Wholesale by 11.5% during the first quarter. Bank of America Corp DE now owns 7,515,031 shares of the retailer’s stock valued at $7,488,203,000 after buying an additional 773,651 shares during the period. Corient Private Wealth LLC grew its stake in shares of Costco Wholesale by 838.9% during the fourth quarter. Corient Private Wealth LLC now owns 6,125,405 shares of the retailer’s stock valued at $5,282,182,000 after buying an additional 5,472,968 shares during the last quarter. Invesco Ltd. raised its holdings in shares of Costco Wholesale by 3.4% in the fourth quarter. Invesco Ltd. now owns 4,328,729 shares of the retailer’s stock worth $3,732,836,000 after buying an additional 143,150 shares during the period. Finally, UBS AM a distinct business unit of UBS ASSET MANAGEMENT AMERICAS LLC raised its holdings in shares of Costco Wholesale by 5.5% in the second quarter. UBS AM a distinct business unit of UBS ASSET MANAGEMENT AMERICAS LLC now owns 3,068,312 shares of the retailer’s stock worth $2,870,314,000 after buying an additional 160,893 shares during the period. Institutional investors own 68.48% of the company’s stock.

Key Headlines Impacting Costco Wholesale

Here are the key news stories impacting Costco Wholesale this week:

• Positive Sentiment: Strong September sales: Costco reported September net sales of $30.02 billion, up 13% year over year. Companywide comparable sales increased 11.4%, while comparable sales excluding gasoline and foreign-exchange effects rose 7.6%. U.S. comparable sales increased 12.5%, supported by higher traffic and transaction growth. Costco Wholesale Corporation Reports September Sales Results
• Positive Sentiment: Digital and membership momentum: Online sales reportedly grew 19%, reinforcing Costco’s retail momentum. Coverage also points to the company’s popular merchandise and new offerings as potential drivers of membership sign-ups and customer engagement. Costco’s September Sales Rise 13% on Strong Comps, Digital Growth
• Positive Sentiment: Analyst support: Royal Bank of Canada reaffirmed its “sector perform” rating but set a $1,000 price target, implying moderate upside from recent trading levels. UBS also characterized September trends as accelerating. Royal Bank of Canada rating update Costco September Sales Point to Accelerating Trends
• Neutral Sentiment: Analysts remain measured: DA Davidson maintained a “hold” rating following a warehouse-club tour, suggesting that strong traffic is already balanced against valuation and margin concerns. DA Davidson Costco warehouse tour
• Negative Sentiment: Growth quality and valuation risks: Analysts caution that part of September’s comparable-sales surge may have come from higher gasoline prices and other lower-margin or one-time benefits. COST trades at roughly 45 times earnings, leaving limited room for execution misses or margin pressure. Costco’s Sales Rebound in September

About Costco Wholesale

Costco Wholesale Corporation operates a membership-based warehouse retail business under the Costco name. The company sells a broad selection of merchandise, including groceries, fresh foods, beverages, appliances, electronics, furniture, apparel, jewelry, hardware, and seasonal products. It also offers services such as gasoline, pharmacies, optical departments, hearing-aid centers, food courts, travel services, and business delivery in selected markets.

Costco markets many products under its private-label Kirkland Signature brand and sells merchandise through warehouse locations and e-commerce platforms.